Verizon Acquisition of Terremark January 28, 2011 Agenda Lowell - - PowerPoint PPT Presentation
Verizon Acquisition of Terremark January 28, 2011 Agenda Lowell McAdam Strategic Overview President & Chief Operating Officer Verizon Communications Manuel D. Medina Terremark Overview Chief Executive Officer & Chairman Terremark
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Q&A Lowell McAdam President & Chief Operating Officer Verizon Communications Summary Fran Shammo Chief Financial Officer Verizon Communications Financial Review Manuel D. Medina Chief Executive Officer & Chairman Terremark Worldwide Terremark Overview Lowell McAdam President & Chief Operating Officer Verizon Communications Strategic Overview
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NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act
materially from those expressed in the forward-looking statements: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in labor matters, including workforce levels and labor negotiations, and any resulting financial and/or operational impact, in the markets served by us or by companies in which we have substantial investments; the effect of material changes in available technology; any disruption of our suppliers’ provisioning of critical products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural or man-made disasters or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any loss of or inability to renew wireless licenses, and the final results of federal and state regulatory proceedings and judicial review of those results; the timing, scope and financial impact of our deployment of fiber-to-the- premises broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; our ability to successfully integrate Alltel Corporation into Verizon Wireless’s business and achieve anticipated benefits of the acquisition; and the inability to implement our business strategies.
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Please note that slides related to today's call are available on Terremark's Web site, at www.Terremark.com under the investor relations link. During our call today, we will be making forward-looking statements. Any statements that refer to expectations, projections, or other characterization of future events, including financial projections and future market conditions, is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the risk factors discussed in Terremark’s form 10-K, the form 8-K filed with the SEC today, and today’s press release. Terremark does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances. We will also provide non-GAAP measures on today's conference call. We provide a reconciliation of those measures to the most directly-comparable GAAP measures and a list of the reasons why the Company uses those measures in today's press release.
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statement, and other materials with the Securities and Exchange Commission (“SEC”) in connection with the proposed transaction. We urge investors to read these documents when they become available because they will contain important information. Investors will be able to obtain free copies of the offer to purchase and proxy statement, as well as
www.sec.gov, the SEC’s website. Investors may also obtain free copies of these documents at www.verizon.com/investor. Free copies of Terremark’s filings are available at www.terremark.com/investor-relations.aspx.
employees may be deemed to be participants in the solicitation of proxies from Terremark shareowners with respect to the proposed merger of Verizon’s wholly owned subsidiary Verizon Holdings Inc. with and into Terremark. Information about Verizon’s directors and executive officers is available in Verizon’s proxy statement for its 2010 annual meeting of shareholders, dated March 22, 2010. Information about Terremark’s directors and executive officers is available in Terremark’s proxy statement for its 2010 annual meeting
potential participants will be included in the offer to purchase and proxy statement and
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Service Provider
Service consultants
cities, 159 countries
– 5 Smart Data Centers – 16 Premium Data Centers – 29 Advanced Data Centers – ~150 Standard Data Centers
Security Global Network Professional Services Data Centers
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A Verizon Company
provider
services
hosting companies
portfolio
and cloud services
managed IT infrastructure services
platform delivering cloud, security and managed hosting services
Europe and Latin America
voice, data, IP, IT and security solutions
as a Service and Web Hosting
Services
and 5 Smart Data Centers in US, Europe and Asia
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(1) Projected guidance midpoint
Total Revenue ($M)
$351.5 $292.3 $250.5 $187.4 FY 2008 FY 2009 FY 2010 FY 2011
– Space, power and a secure environment for clients’ IT equipment
– Encompasses design, deployment,
management of clients' IT infrastructure – Managed Hosting – Cloud Computing – Managed Network Services – Security
– Allows customers to connect their networks and equipment in a flexible and cost-effective manner FY 2Q ’11 Revenue Mix
50% Managed Services 6% Exchange Point 44% Colocation
(1)
23% CAGR
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Source: Company website and filings
Santa Clara Dallas Culpeper Miami Dominican Republic Bogota Sao Paulo Madrid Brussels Amsterdam Istanbul
Key Highlights
Europe and Latin America
– NAP of the Americas (Miami) – NAP of the Capital region “NCR” (Culpeper) – NAP West (Santa Clara)
FY11 with 332k sq. feet built out
– Utilization of 62% (of built-out space)
Amsterdam in June 2010 with 25k sq. feet of colocation space
– Expansion of 2nd and 3rd datacenters at NCR – Phase I Santa Clara expansion
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– Terremark services sold though more expansive Verizon channels – Verizon services sold through Terremark’s Federal and Latin American channels – Accelerated product development and cloud migration
– SG&A savings – Reduced network costs
– Procurement efficiencies – Avoidance of Terremark network and back-office system growth requirements – More efficient capacity expansion and utilization opportunities
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